Charities are too Vital to Fail

The federal government is helping. Wage subsidies and a recently announced $350-million emergency fund are helping nonprofits meet increased demands today. But the economic downturn we are experiencing requires a long-term solution. 

A stabilization fund for the non-profit sector is the answer.

Imagine Canada projected the pandemic will reduce charity and non-profit revenues by as much as $15-billion, with more than 100,000 layoffs. The statistics are grim. Approximately 70 per cent of charitable organizations are reporting a decline in revenues. Two-fifths have already laid off paid staff or reduced working hours. And Statistics Canada reported that job losses related to the non-profit sector are approximately 1.4 times higher than other sectors. 

Emergency funding is helping non-profits function at limited capacity, but we are looking to the future. Our revenue is not dependent on the demands of clients—in fact, the more Canadians that show up at our doors, the more expenses we incur. Meanwhile, our revenue streams—individual donors, major gifts, fee-for-service programs, corporate partners—have turned to a trickle in reaction to plummeting profits.

As physical distancing measures relax, the demands will be greater—more people will be out of work and more will be looking for the programs and services offered by organizations like YMCAs and Boys and Girls Clubs. And when that happens, we will need support.